When Less Research Is More

During June, value Mohnish Pabrai gave a talk at Google in which he touted the benefits of doing as little research as possible when evaluating a potential investment. This advice might seem misleading at first, but the reasoning behind Pabrai’s guidance contains a vital lesson for investors conducting securities research.

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Charlie Munger: Less securities research is better for investors

It is vital to research a potential investment before you take the plunge. However, too much securities research can be damaging. Spending hours trawling over numbers, forecasts and spreadsheets only increase the likelihood that you will reach a positive conclusion. Therefore, Pabrai argues...